Arbab Muhammad Tahir, J.- Through this consolidated judgment, I shall decide the petitions listed below as common questions of law and facts have been raised in all these petitions.
1) W.P. No.3609/2022, Islamabad Cooperative Housing Society, Islamabad through its Secretary v. Additional Commissioner (G)/Director Admin & 2 others.
2) W.P. No.369/2023, Ch. Tahir Mehmood & another v. Additional Commissioner (G)/Director Admin & others 3) W.P. No.3698/2022, Ch. Sultan Mehmood & another v. Additional Commissioner (G)/Director Admin & others 4) W.P. No.3711/2022, Javed Iqbal Khan v. Federation of Pakistan through Secretary & others 5) W.P. No.3712/2022, Khalid Farooq v. Federation of Pakistan through Secretary & others 6) W.P. No.3714/2022, Ch. Muhammad Ayub v. Federation of Pakistan through Secretary & others 7) W.P. No.3721/2022, Shaukat Ali & another v. Additional Commissioner (G)/Director Admin & others 8) W.P. No.3733/2022, OGDC, Officers Cooperative Housing Society, Islamabad through its President v. Additional Commissioner (G)/Director Admin & others 9) W.P. No.3847/2022, OGDC Employees Cooperative Housing Society Islamabad through its Secretary v. Additional Commissioner (G)/Director Admin & others 10) W.P. No.3857/2022, Saif Ullah & another v. Registrar Cooperative Housing Societies & others 11) W.P. No.3900/2022, Pakistani Professionals Cooperative Housing Society, Islamabad through its Secretary v. Additional Commissioner (G)/Director Admin & others 12) W.P. No.3713/2022, Khurram Shehzad & another v. Federation of Pakistan through Secretary & others 13) W.P. No.3605/2022, Work, No Word Cooperative Housing Society Ltd. Islamabad through its Secretary v. Additional Commissioner (G)/Director Admin & others 14) W.P. No.3611/2022, WAPDA Employees Cooperative Housing Society, Islamabad through its Management Committee v. Additional Commissioner & others 15) W.P. No.3623/2022, Ch. Waqar Hussain & others v. Federation of Pakistan through Secretary & others 16) W.P. No.3632/2022, Engr Maj. Gen. Viqar Ul Haq Khan Khalid & others v. Federation of Pakistan through Secretary & others 17) W.P. No.3645/2022, Muhammad Ramzan & another v. Additional Commissioner (G)/Director Admin & others
2. The petitioners, through the listed petitions, have assailed orders passed by the Deputy Commissioner/Registrar Cooperative Societies, I.C.T., Islamabad whereby registrations of the petitioner Societies have been cancelled while invoking powers under section 47 of the Cooperative Societies Act, 1925 on the ground that the "areas of operation" of the Societies fall outside the jurisdiction of the Islamabad Capital Territory.
3. The facts, relevant for adjudication of the petitions are that the petitioner Societies are registered under section 10 of the Cooperative Societies Act, 1925 (hereinafter the "Act of 1925") with the Cooperative Societies Department, Islamabad Capital Territory. The areas of operation mentioned in the approved Byelaws of the Societies in almost all the Societies are Islamabad Capital Territory, District Rawalpindi and District Attock. The Circle Registrar, Cooperative Societies Department, ICT issued Circular, dated 18.05.2022 directing the respective Management Committees to get the Societies registered with the Cooperative Societies Department of the Province concerned i.e. the area of operation, within 30 days. Perusal of circular shows that it was issued by order of the Deputy Commissioner/Registrar Cooperative Societies, Islamabad. Some of the Societies assailed the circular through filing revision petitions under section 64-A of the Act of 1925. The Secretary, Cooperative Societies, ICT adjudicated upon the revision petitions. The revision petitions were decided vide order, dated 13.09.2022 whereby circular, dated 18.05.2022, was upheld. However, the matter was remanded to the Registrar Cooperatives, for cancellation of registrations of the Societies under the Act of 1925 and the rules. The Registrar, Cooperative Societies, ICT vide order, dated 23.09.2022, passed the impugned orders, whereby the registrations of the Societies have been cancelled in exercise of powers conferred under section 47 of the Act of 1925 with the direction to get the Societies registered with the concerned Registrar Cooperative Societies of the Provinces where the housing schemes of the Societies are established.
4. The learned counsels for the petitioners have argued that; the Societies were duly registered in the Islamabad Capital Territory and running its business in accordance with the Act of 1925 and the rules made thereunder; the areas of operation mentioned in the Byelaws of the Societies include the area of Islamabad Capital Territory; the Societies can establish projects in other Provinces in accordance with the Multi Unit Cooperative Societies Act, 1942 (hereinafter the "Act of 1942"); the projects of the Societies are outside the domain of the Registrar Cooperative Societies (hereinafter the "Registrar"); the Registrar can only look into the matters of AGM, Elections and audit of the Society; section 47 of the Act of 1925 envisages winding up of a society and that too after inquiry under section 43 and conducting inspection under section 44/44-A on application of two-third members of the society; the Registrar, before invoking section 47 of the Act of 1925 did not fulfill the pre-requisites contemplated in sections 43 and 44 ibid; the winding up proceedings culminates in initiation of liquidation proceedings; there is no order as to liquidation of the Societies; there is no allegation that the prerequisites for registration under section 10, contained in sections 7, 8 and 9 of the Act of 1947 were not fulfilled; the ground "area of operation" for cancellation of the registration of the Societies is alien to the scheme of the Act of 1925; the impugned order is against the mandate of Article 10A of the Constitution of the Islamic Republic of Pakistan, 1973; no inquiry was mandated under the Act of 1925 before cancellation of the Society was conducted before passing the impugned orders; a Society cannot be registered in two different areas simultaneous, however, it can establish projects in more than one province simultaneously; the approved Byelaws of the Societies, unless amended, are binding on the Societies as well as Registrar; the Societies registered at Islamabad Capital Territory can operate and function in other Provinces under section 3A of the Act of 1942; the layout plan etc., of the Societies is approved by the civic bodies having control and the power to regulate the area where the project is situated; the Registrar has no power to deal with the projects of the Society and the area of operation; the Society cannot act in contravention of the Byelaws and any order issued by the Registrar in contravention thereof is unlawful; the authority to amend the Byelaws vests in the AGM under Rules 5, 6 and 6-A of the Islamabad Cooperative Societies Rules, 2018 (hereinafter the "Rules of 2018"); the impugned order has completely disrupted the affairs of the Societies; the properties vests in the Society and not member; the Registrar has ignored the fact that the Society once registered cannot be cancelled without liquidation of assets and disbursement of shares; the Registrar was not duly notified under the Act of 1925 at the time of issuance of the impugned orders; the direction of the Registrar to get the Societies registered in Punjab is unlawful as the Punjab Undesirable Cooperative Societies Act, 1993 prohibits registration of Societies in Punjab; some of the Societies have directly approached this Court without preferring revision for the reason that the impugned order of the revisional authority has already decided the question involved; when an order is passed on the direction of the appellate authority, no appeal/revision is required to be filed; reliance has been placed on the cases titled "Lt. Col. (Retd) Muhammad Azhar v. Federation of Islamic Republic of Pakistan through Chief Commissioner and others" [2013 MLD 338 Islamabad], "Tayya b Ahmad Khan and others v. Secretary Cooperatives and others" [2012 CLC 1067 Lahore], "Bahadur Yar Jang Cooperative Housing Society Ltd. v. Feroze Shamsi and others"
[PLD 2010 SC 1058], "Muhammad Tahir Pervaiz and others v. Province of Punjab and others"
[2022 MLD 1777 Lahore], "Federal Government employee's Housing Foundation and others v.
Malik Ghulam Mustafa and others" [PLD 2019 Islamabad 1], "Haji Khuda Bakhsh and 9 others v.
Deputy Registrar, Cooperative Societies Punjab, Lahore and 2 others" [PLD 2007 Lahore 341], "Ch. Khalil-ur-Rehman v. The Registrar, Cooperatives, Punjab, Bank Square, Lahore and 2 others" [1994 MLD 1637 Lahore], "Siraj Din Orfi and others v. Circle Registrar of Co-operative Societies and others" [2010 MLD 1974 Lahore], "Khalid Mahmood v. N.-W.F.P. through Chief Secretary, Peshawar and 4 others" [PLD 2011 Peshawar 120], "Tariq Mahmood v. Government of Pakistan through Joint Secretary Ministry of Minorities (Minorities Affairs Division) Islamabad and 3 others" [2008 CLC 102 Lahore], "Sohail Ahmed and 7 others v. Province of Sindh through Secretary and 2 others" [2017 PLC (CS) 510 Sindh High Court], "Government of Sindh through Secretary Agriculture and Livestock Department and others v. Messrs Khan Ginners (Pvt) Ltd and 57 others" [PLD 2011 SC 347], "Muzaffar Khan and others v. Evacuee Trust Property through Deputy Administrator" [2002 CLC 1819 Lahore], "Malik Muhammad Hashim Awan and another v.
Chief Secretary Government of Punjab, Lahore and 3 others" [12017 PLC (CS) 1085], "JDW Sugar Mills Ltd. v. Province of Punjab through Secretary Department of Irrigation and Power, Lahore and another" [PLD 2005 Lahore 506], "Senior Member BOR and others v. Sardar Bakhsh Bhutta and another" [2012 SCMR 864], "Collector of Customs, Custom House, Lahore v. Sahib Ullah"
[2004 PTD 819 Lahore], "Imtiaz Ahmed and others v. Punjab Public Service Commission through Secretary, Lahore and others" [PLD 2006 SC 472], "Azhar Ali Khan v. Municipal Corporation, Rawalpindi through Administrator" [1997 CLC 1486 Lahore], "Kashmir Development Cooperative Finance Corporation Ltd. Mirpur (through its Chairman) and another v. Registrar, Cooperative Societies Azad Jammu and Kashmir Government and another" [1986 CLC 2279 AJ&K] and unreported judgment of this Court, dated 02.01.2023, passed in W.P. No.3435/22 titled "Lt. Col. Nazar Hussain Islam v. Cooperative Societies Department, through its Director General/Secretary, ICT Islamabad and others".
5. On the other hand, the learned State Counsel, representing the Registrar, has contended that; the Registrar is competent to initiate proceedings on his own motion; the Society was registered under section 10 of the Act of 1925; the Act of 1942 mandates that a Society which extends to other Province shall get itself registered in that Province; the Registrar notified under the Act of 1925 is appointed by the Chief Commissioner, ICT while exercising powers of Provincial Government; the Societies have not been registered by the Federal Registrar appointed under section 4 of the Act of 1942 by the Federal Government; unless registered by the Federal Registrar, the Societies cannot operate in other Provinces; the Societies have not provided any revenue record that they have acquired land within the limits of Islamabad Capital Territory and initiated projects; the Government of Punjab has banned registration of housing societies in Punjab, therefore, the Societies have merely got registration from Islamabad and launched projects in Punjab; the Societies have deliberately opted not to register in the Province of Punjab before initiating projects; the loss caused to the Societies is due to the conduct of respective management committees; the Societies have initiated projects in the Province of Punjab at their own risks and costs; innocent people have invested their hard earned money in the Societies considering it to be situated in the Islamabad Capital Territory; the AGM of the respective Societies is conducted at the project site after 70/80% development; the Societies have hardly developed 20/30% of their projects, therefore, they conduct AGMs at different venues in Islamabad; the potential buyers and members remain under the impression that the Society is situated in the Islamabad Capital Territory.
6. The learned Assistant Attorney General has adopted the arguments advanced by the learned State Counsel and has argued that the actions taken by the Societies in the intervening period i.e. after cancellation of registration may be declared void.
7. Heard, record perused.
8. The petitioner Societies were registered with the Cooperative Societies Department, Islamabad Capital Territory under section 10 of the Act of 1925. The Byelaws of the Societies are duly approved.
The registrations of the Societies have been cancelled under section 47 of the Act of 1947 on the ground that the projects of the Societies fall outside the territorial limits of Islamabad Capital Territory. The first legal question which has emerged in the petitions in hand is whether in the circumstances involved in the petitions in hand, the registration of the Societies could have been cancelled under section 47 of the Act of 1947 without recourse to the due process provided under sections 43, 44 and 44-A ibid?
9. The Cooperative Societies Department, Islamabad (hereinafter the "Department") admits that the Societies have been registered under section 10 of the Act of 1925 after fulfilling the requisite eligibility threshold contained under the Act ibid. The impugned orders whereby the registrations of the Societies have been cancelled have been passed under section 47 of the Act of 1925. Chapter VII of the Act of 1925 deals with "Inspection of Affairs". Sub-section (1) of Section 43 of the Act of 1925 provides that the Registrar may of his own motion, by himself or any person duly authorized by him in writing, hold an inquiry into the constitution, working and financial condition of a society.
Sub-section (2) of section 43 of the Act of 1925 provides that in inquiry into the constitution, working and financial condition of a society shall also be held, (i) on receipt of a requisition from the society duly authorized by the rules in respect of its members, such member being itself a society, (ii) on application of majority of the committee of the society, (iii) on the application of one-third of the members of the society. The powers of the Registrar to hold an inquiry under section 43 is twofold.
He can hold an inquiry suo-motu, on his own motion and on receipt of requisition/application under sub-section (2) of section 43. The exercise of powers of the Registrar to hold an inquiry on his own motion under sub-section (1) is independent of sub-section (2) of section 43. Reliance is placed on the on the cases titled "Pir Illahi Bukhsh Cooperative Housing Society Ltd. Karachi v.
Registrar Cooperative Societies and others" [1968 SCMR 423] and "Saddar Cooperative Market Ltd, through Honorary Secretary v. Province of Sindh, Department of Cooperation and others"
[2009 CLC 193 Karachi]. Section 44 empowers the Registrar to inspect the books of the society on the application of creditor in the eventuality where the debt is a sum then due and it is not repaid after such demand by the creditor. Section 44-A provides that the Registrar or his authorized representative shall have access and right to inspect the books, accounts, cash, documents, properties and securities of a society and every employee, past or present, of the society shall produce the same and furnish such information with regard to transactions and working of the society as the person making such inspection may require. Section 47 provides that if the Registrar, after an inquiry has been held under section 43 or after an inspection has been made under section 44 or section 44-A or on receipt of an application made by two-third of the members of a society present at a special general meeting, called for the purpose or of his own motion, in case of a society that has not commenced working, or has ceased working, is of opinion that the society ought to be wound up he may issue an order directing it to be wound up, and then when necessary, may appoint a liquidator for the purpose and fix his remuneration.
10. In the case in hand, the proceedings were initiated against the Societies by the Department by issuing a circulars/directions, dated 18.05.2022. For the sake of convenience the text of circular, dated 18.05.2022, is reproduced below.- "Please refer to the subject noted above.
2. You are directed to get your Society registered in the Province of the Area of Operation of your Society within 30 days from receipt of this notice, failing which the registration with the Cooperative Societies Department, ICT, Islamabad shall be cancelled without serving any further notice.
3. By the orders of the Deputy Commissioner/Registrar Cooperative Societies, ICT, Islamabad."
Feeling aggrieved by issuance of the above circular, some of the Societies filed revision petitions under section 64-A of the Act of 1925. The Secretary Cooperatives of the Department vide order, dated 13.09.2022 upheld circular, dated 18.05.2022. However, the matter was remitted to the Registrar for cancellation of the Societies. The operative portion of the order is reproduced below.- "I have heard the counsels for the Petitioners and considered the point of the view of the department. I am of the opinion that this measure taken by the registrar is in the right interest as well as better administration of the societies. Therefore, this matter is remanded back to the worthy Registrar Cooperatives, who may proceed for cancellation of registration of the Societies as provided under relevant provisions of law, and following the procedure laid down in Cooperative Societies Act and the Rules."
After the above order of the revisional authority i.e. Secretary Cooperatives, the Registrar, vide order, dated 23.09.2022, cancelled the registrations of the Societies under section 47 of the Act of 1925. The text of notification, dated 23.09.2022, is reproduced below.
"Whereas, the Islamabad Cooperative Housing Society was registered in this office vide registration No.313 dated 28-08-1988.
2. Whereas, the project of the Society falls outside the jurisdiction of Islamabad Capital Territory.
3. Whereas, a circular No.1790/CR/ICT/B dated 18-05-2022 was issued to Islamabad Cooperative Housing Society to get itself registered in the province of the area of operation within 30 days from receipt of this notice, failing which the registration with the Cooperative Societies Department ICT, Islamabad shall be cancelled without serving any further notice.
4. Whereas, the Managing Committee of the Society has failed to get the Society registered with the concerned Cooperative Department of the area of the respective jurisdiction.
5. In view of the above, I, Irfan Nawaz Memon Deputy / Registrar Cooperative Socities, ICT, Islamabad in exercise of powers conferred upon me under section 47 of the Cooperative Societies Act, 1925 do hereby cancel registration of Islamabad Cooperative Housing Society and with the direction to Islamabad Cooperative Housing Society to get itself registered with the concerned Registrar Cooperative Societies of the province where the housing scheme of the Society is established, which is Registrar Cooperative Societies, in their case."
11. The above reproduced orders passed by the Cooperative Societies Department are silent as to how and why the proceedings were initiated. In order to issue an order under section 47, initiation of proceedings as contemplated in sections 43, 44 or 44-A, as the case may be, are mandatory.
Section 47 stipulates two further eventualities for winding up of societies (a) on receipt of an application by the Registrar, made by two-third of the members of a society present at a special general meeting, called for the purpose or (b) the Registrar, of his own motion, in case of a society that has not commenced working, or has ceased working. Insofar as the instant case is concerned, the Registrar initiated proceedings on the ground that the "areas of operation" of the Societies fall outside the jurisdiction of Islamabad Capital Territory. This ground is alien to the scheme of the Act of 1925 and the Act of 1942, particularly for initiating proceedings for the purposes of section 47 ibid. The circulars, dated 18.05.2022, issued to the Societies by the Registrar nowhere mentions that any inquiry as mandated under sections 43, 44 or 44-A had been conducted and the result thereof was communicated to the Societies under sections 43(4) or 44(2) ibid. The order of the revisional authority is reproduced above. Bare perusal of the said order reveals that it is a non-speaking order. The revisional authority failed to record reasons in support of the said impugned order.
12. Section 24-A of the General Clauses Act, 1897 provides that where, by or under any enactment, a power to make any order or give any direction is conferred on any authority, office or person such power shall be exercised reasonably, fairly, justly and for the advancement of the purpose of the enactment. The Hon'ble Supreme Court in the case titled "Muhammad Amin Muhammad Bashir Limited v. Government of Pakistan, through Secretary Ministry of Finance, Central Secretariat Islamabad and others" [2015 SCMR 630] has held that any action which is violative of the principles contained in section 24-A of the General Clauses Act, 1897 is liable to be struck down.
13. The learned counsel for the Societies have argued at length that the Societies registered at Islamabad can engage in other provinces and launch projects/schemes. They heavily relied on the provisions of the Multi Co-operative Housing Societies Act, 1942. They argued that a Society registered at Islamabad can launch projects/schemes in other provinces and registration in other Provinces for this purpose is not required and in this regard they relied on sections 3 and 3-A of the Act of 1942.
14. The Hon'ble Supreme Court in the case titled "Riasat Ali Gondal, Chief Manager, National Industrial Corporation Finance Cooperation Limited, Gujranwala Zone v. The Registrar/Deputy Commissioner, Cooperative Societies, Islamabad and others" [1991 SCMR 561] has examined the provisions of the Act of 1942. In the afore-referred judgment i.e. Riasat Ali Gondal's case, the Society was registered under the Act of 1925 at Lahore and in line with its byelaws, one of its registered offices was situated at Islamabad. Upon receiving several complaints regarding affairs of the Society, the Deputy Commissioner/Registrar Cooperative Societies, Islamabad proceeded to supersede the Board of Directors of the said Society and appointed administrator to perform functions of the Board of Directors. It is worth-mentioning here that Head Office of the Society was situated at Lahore. The august Supreme Court in Riasat Ali Gondal's case held that the power to regulate registration, control and dissolution shall vest in the Registrar Cooperative Societies of the Province where the Society was actually registered, which in that case was at Lahore, whereas, the Deputy Commissioner, Islamabad was vested with the limited power of audit, inspection and/or calling for the information and returns. The relevant portion of the judgment in Riasat Ali Gondal's case supra is reproduced below.- "The specific portions of the law quoted above which deserve particular attention are the words "actually registered" used in subsections (1) ,(2) and (3) of sections 2 and 3 and the same expression used in subsections (2) of sections 3-A and of section 4 of the Act. The law applicable and the jurisdiction exercisable has been indicated in all these provisions by reference to the place of actual registration. Additionally, the expression actually registered has been used to distinguish a situation where the registration is deemed to exist elsewhere for specified purposes.
In this context the reservation made that the Corporation or society, as the case may be, is subject for all the purpose of registration, control or dissolution, to the law relating to Corporation/Society in force for the time being in the Province in which it is actually registered, makes the jurisdiction beyond any doubt. The exclusions enjoyed from this general proposition on the strength of the deeming part of the registration, are the powers of audit and inspection and the supply of the copies of the bye-laws, returns and information which may be asked for. As both the situations i.e., deeming of the registration as well as the actual registration having been specifically and separately provided for in the law, there is left no scope on any principle of interpretation to either enlarge the category or to limit or restrict it beyond the point envisaged by the law. In the circumstances, by merely having its registered office at Islamabad the place of its actual registration will not shift nor can be deemed to shift to that territory. The actual place of registration, in this case, will remain in Lahore and the law applicable for the purposes of registration, control and dissolution will be the same that applies in that Province. On that view of the matter, the Registrar, Cooperative Societies/Deputy Commissioner, Islamabad Capital Territory, Islamabad could not exercise jurisdiction except for the limited purpose of audit., inspection and /or calling for the information and returns.
The facts of Riasat Ali Gondal's case and the portion of the judgment have been briefly narrated/reproduced above so as to emphasis that the Society registered in one province can operate and launch schemes in another province, if its byelaws so provide. In the case in hand, the byelaws of the petitioner Societies have been duly approved by the Registrar Cooperative Department, ICT, which are binding on the parties before this Court.
15. In the case in hand, the Registrar, before issuing an order under section 47 of the Act of 1925 failed to follow the procedure prescribed under the law i.e. sections 43, 44 or 44-A of the Act ibid. The Registrar failed to appreciate the provisions of the Act of 1942 in letter in spirit. The principles enshrined under Article 10-A of the Constitution of the Islamic Republic of Pakistan, 1973 and section 24- A of the General Clauses Act, 1897 appears to have been violated while passing the impugned orders. The impugned orders i.e. the circular, dated 18.05.2018, order of the revisional authority, dated 13.09.2022 and notifications, dated 23.09.2022 are not legally sustainable.
16. If seen from another perspective, the facts and circumstances involved in the cases raise serious questions about the conduct of the officials of the Cooperative Societies Department and the Committees, by whatever name called, of the Societies. They availed every opportunity to play fraud with the statutes. During the course of arguments, the Circle Registrar, submitted that the Societies after getting registration at Islamabad have established projects in other Provinces, however, the Annual General Meetings are held at places/marquees situated within the territorial limits of Islamabad Capital Territory. He further stated that, prima facie, it appears that in order to defeat the purpose of ban imposed in the Province of Punjab, the Societies obtained registration at Islamabad by merely mentioning Islamabad amongst other cities as area of operation and thereafter launched projects in the Province of Punjab. Through this clever move, prima facie, they have tried to deceive innocent buyers and investors by giving an impression that the Societies and the projects are situated at Islamabad. The Department submitted reports in respect of each petition/Society before this Court regarding the areas of operation. The relevant portions of the reports are reproduced below.- S. No.Petition Number & Society NameReport of Department 1.W.P. No. 3609/2022 Islamabad Cooperative Housing SocietyHousing scheme of society with the title of "ICHS TOWN" situated at Tehsil Fateh Jang District Attock and is approved by TMA Fateh Jang rather by CDA.
No revenue record regarding purchase of land in revenue limits of Islamabad has been provided.
2.W.P. No. 369/2023 Pak PWD Employees Cooperative Housing SocietyHousing scheme of society is situated at Mouza Gorha Bharta, Bagga Sheikhan and mera Bhartha Chakbeli road, Rawat Tehsil and District Rawalpindi and is approved by RDA.
No revenue record regarding purchase of even a single inch land in revenue limits of Islamabad has been provided.
3.W.P. No.3698/2022 & W.P. No.3714/2022 KRL Employees Cooperative Housing SocietyHousing scheme of society is situated at Mouza Sound Gangal, Mouza Shadi Dhamial, and Mouza Amir Tehsil and District Rawalpindi and is approved by TMA, RDA Rawalpindi.
No revenue record regarding purchase of land in revenue limits of Islamabad has been available.
4.W.P. No.3711/2022 National Police Foundation Cooperative Housing SocietyOne Housing scheme of Society with the title of "National Police Foundation CHS" situated within the revenue limits of Islamabad and the approvals of the said scheme are approved by CDA.
Some other Housing scheme are also launched by the Society i.e. Mohafiz Town Housing scheme Rawat Rawalpindi, Mohafiz Town Phase-I Multan road Lahore, Mohafiz Town Defense road Lahore, Mohafiz Town Sargodha, Mohafiz Town Gujranwala.
The registration of petitioner's society could be kept intact to the extent of Society's Housing scheme falling within the revenue limits of ICT, Islamabad and after the amended approval of their bye-laws if so desired by the members of the Society.
5.W.P. No.3712/2022 PARC Employees Cooperative Housing SocietyHousing scheme of society is situated at Mouza Bagga Sheikhan, Chakbeli road Tehsil and District Rawalpindi and is approved by RDA rather by the CDA.
No revenue record regarding purchase of land in revenue limits of Islamabad has been provided.
6.W.P. No.3713/2022 PAEC Employees Cooperative Housing SocietyHousing scheme of society is situated at Mouza Manga Tehsil Murree and the other site is also Located at Tehsil & District Rawalpindi and is approved by MKDA, TMA, RDA Rawalpindi.
Revenue record regarding purchase of some land in revenue limits of Islamabad has been available.
The registration of petitioner's member of the society could be kept intact with the Registrar Cooperative Societies Islamabad to the extent of portion from their area of operation falling with the revenue limits of ICT, Islamabad subject to approval of amended bye-laws if so desired by the members 7.W.P. No.3721/2022 & W.P. 3611/2022 WAPDA Employees Cooperative Housing SocietyHousing scheme of society with the title of "WAPDA ECHS" situated at tehsil Taxila district Rawalpindi and is approved by RDA.
No revenue record regarding purchase of land in revenue limits of Islamabad has been available.
8.W.P. No.3733/2022 OGDC Officers Cooperative Housing SocietyThe Housing scheme of society is Situated at Mouza Hakla, Tehsil Taxila District Rawalpindi .
The Housing scheme is approved by the RDA.
9.W.P. No.3847/2022 OGDC Employees Cooperative Housing SocietyHousing scheme of the society is situated at Mouza Karlot mutually falling within the revenue limits of Islamabad and Tehsil Murree District Rawalpindi falling within the revenue limits of Islamabad and Tehsil Murree District Rawalpindi and the LOP/NOC of Housing Scheme is approved and obtained by MKDA rather than CDA.
Revenue record regarding purchase of some land owned And occupied by the Society within the revenue limits of Islamabad has been provided.
LOP or any kind of approval from CDA has not been provided.
10.W.P. No.3857/2022 M/o Commerce Employees Cooperative Housing Society No proof regarding planning of society in sector E-19 Islamabad has been provided.
No revenue record regarding purchase of land in revenue limits of Islamabad has been provided.
LOP or any kind of approval from CDA has not been provided.
11.W.P. No.3900/2022 Pakistani Professional Cooperative HousingHousing scheme of society is situated at Tehsil Murree District Rawalpindi and the LOP/NOC of Housing scheme is approved and obtained by MKDA rather that the CDA.
No revenue record regarding purchase of land in revenue limits of Islamabad has been provided.
12.W.P. No.3605/2022 Work No Word Cooperative Housing SocietyHousing scheme of society is situated at Mouza Noon, Mouza Nirala Islamabad and Mouza Roopa, Mouza Kaak, Tehsil and District Rawalpindi mutually falling within both the revenue limits of Islamabad and Tehsil and District Rawalpindi and the LOP / NOC of Housing scheme are approved and obtained by RDA & CDA.
Revenue record regarding purchase of some land owned and occupied by the Society within the revenue limits of Islamabad has been provided.
13.W.P. No.3623/2022 State Life Insurance Cooperative Housing SocietyHousing scheme of society with the title of "State Life Insurance Cooperative Housing Society" is Situated at Tehsil Fateh Jang District Attock and the LOP of Housing scheme is approved by TMA Fateh Jang rather by the CDA.
No revenue record regarding purchase of land in revenue limits of Islamabad has been provided.
14.W.P. No.3632/2022 Engineers Cooperative Housing SocietyHousing scheme of society is allegedly situated at sector E-18 and D-18 Islamabad. LOP/NOC of Housing scheme is approved and obtained by Zilla Counsel Rawalpindi and CDA.
No revenue record regarding purchase of land falling in the revenue limits of Islamabad has been provided.
15.W.P. No.3645/2022 Pakistan Employees Cooperative Housing SocietyHousing scheme of society is situated at Mouza Ghurbal, Mohri Katra, Tehsil and District Rawalindi with the title of "PECHS" and the LOP/NOC of Housing scheme is approved and obtained by RDA.
No revenue record regarding purchase of land falling in the revenue limits of Islamabad has been available.
17. Perusal of the above table shows that except Sr. No.4, 6, 9 and 12, the Societies have merely registered at Islamabad and have established projects within the territorial limits of the Province of Punjab. The cooperative societies within the territorial limits of Punjab are regulated under the Act of 1925 by the Cooperatives Department, Government of the Punjab. Besides, the Act of 1925 and Act of 1942, the Punjab Undesirable Societies (Dissolution) Act, 1993 is in force within the territorial limits of the Province of Punjab.
18. For the purposes of the Act of 1925, the Islamabad Capital Territory and the Government of Punjab are two different Provinces. The Registrars in respect of both the areas are appointed under section 4 by the Provincial Governments i.e. Government of Punjab, to the extent of the Province of Punjab and the Chief Commissioner, to the extent of Islamabad Capital Territory. Their powers and jurisdiction under the Act of 1925 are, therefore, limited to the territorial limits of the Province concerned. The Registrar Cooperative Societies Department, Government of Punjab is, therefore, empowered to the extent of causing audit, inspection and/or calling for the information and returns, whereas, the Registrar Cooperative Societies Department, ICT has the power to deal with the registration, control and dissolution of the petitioner Societies. It appears that the Cooperative Societies Department, Islamabad never enforced the law in its true spirit. The working and financial affairs of Societies were not monitored. There is nothing on record, which may indicate that the Cooperative Societies Department, ICT has ever obtained information from the Cooperative Societies Department, Government of Punjab regarding the working and other affairs of the Societies.
19. The Government of Punjab has notified the "Punjab Private Housing Schemes Rules, 2022" whereas, the Capital Development Authority has notified the "Revised Modalities & Procedure (2020) framed under ICT (Zoning) Regulations, 1992 (As Amended) for Development of Private Housing/Farm Housing Scheme in Islamabad Capital territory Zoning Plan". They provide for comprehensive mechanism to deal with the housing schemes launched by the petitioner Societies.
The Registrar Cooperative Societies Department, ICT is empowered to conduct inquiries under the Act of 1925 whether the petitioner Societies are compliant to the rules/regulations notified by the Capital Development Authority or the Government of Punjab, as the case may be.
20. For what has been discussed above, the listed petitions are allowed and disposed-of in the following terms.- (i). Circulars, dated 18.05.2018, orders of the revisional authority, dated 13.09.2022 and notifications, dated 23.09.2022 issued in respect of each petitioner Society are not legally sustainable and are, therefore, set-aside.
(ii). The Registrar is directed to satisfy himself as to whether the Societies had, within a period of one year of registration, furnished the schedule of proposed development of land, master plan, site plan indicating availability of the existing public utilities, etc. under section 9(3) of the Act of 1925.
(iii). The Registrar shall verify whether, in due course of time, the Societies had furnished the requisite data to the Registrar of the Province where the housing projects are being executed. In case of failure, the Registrar shall be at liberty to initiate proceedings under section 43(1) of the Act of 1925.
(iv). The Registrar shall also hold an inquiry whether the Societies have been registered in Islamabad and launched projects in the Province of Punjab without acquiring land in Islamabad merely to circumvent the ban imposed in that Province. The Registrar shall conduct the inquiry, particularly with reference to the dates of their registration and the date when ban was imposed in the Province of Punjab.
(v). The Registrar shall also inquire into the questions whether the Societies have completed the projects initiated in the Province of Punjab in accordance with the "Punjab Private Housing Schemes Rules, 2022" or "Revised Modalities & Procedure (2020) framed under ICT (Zoning)
Regulations, 1992 (As Amended) for Development of Private Housing/Farm Housing Scheme in Islamabad Capital territory Zoning Plan and the Punjab Private Housing Schemes Rules, 2022", as the case may be, and completed the projects within the time frame represented to the general public and whether the Societies have acquired sufficient land required for the purpose. If not, then the Registrar shall conduct an inquiry into the financial affairs of the Societies, as to whether they have the general and financial capacity to continue with the housing schemes. The Registrar shall determine particularly the question as to whether the Societies have commenced working or ceased working, for the purposes of section 47 of the Act of 1925.
(vi). The Registrar shall be at liberty to coordinate and obtain information from the Cooperative Societies Department, Government of the Punjab.
(vii). Publication in national and international newspapers to be issued at the expense of the Societies by the Registrar that their housing schemes are not situated within Islamabad Capital Territory. Enlarged copies of the advertisement shall be permanently displayed at visible places within and outside the main registered and site offices of the Societies for awareness of the general public.
(viii). Most of the Societies have included the word "Islamabad" in their names. The Societies shall rename their projects so as to dispel any impression that they are situated within the limits of Islamabad Capital Territory. The purpose can be achieved by renaming the housing scheme/project under execution.
(ix). The Registrar is directed to furnish compliance report in respect paragraph 20(ii),(iii),(iv),(v),
(vii) & (viii) of this judgment within two months of the date of announcement of this judgment, for perusal in chambers. The Registrar is further directed to proceed strictly in accordance with law after concluding the inquiries as directed above.
(x). Office is directed to serve this order on the Chief Commissioner, ICT and Registrar, Cooperative Societies, ICT for compliance.
21. Before parting, it is important to observe that some of the Societies before this Court have been registered in the name of Government Ministries, Departments and even organizations classified as "strategic organizations" under the National Command Authority Act, 2010. An impression is being given that the said societies are directly being run, managed and controlled by the Government of Pakistan through the concerned Ministries / Departments / strategic organizations. The Registrar as well as Committees of the Societies while proposing and accepting registration in the names of strategic organizations not only overlooked the sensitive nature of functions performed by the said organizations but at the same time compromised identity of the employees availing membership of the same. Similarly, the other Societies registered in the name of Government Ministries / Department, prima facie, also proceeded without authorization from the competent authority. All the housing societies operate as commercial enterprises and the members earn profit from sale and purchase of plots. When Government employees engage in the real estate business in the shape of launching housing schemes, there exist implicit conflict of interest between the functions of the department concerned and duties of the said Government servants towards ordinary citizens.
22. The Registrar, Cooperative Societies Department, ICT is, therefore, directed to verify from the Federal Government whether the Societies have used the name of the Government Ministries/ Departments with the approval of the Federal Government. Similarly, the National Command Authority shall also be approached for same purpose. This exercise shall be done in respect of all the Societies registered with the Cooperative Societies Department, ICT. In case the Societies are found to have used the name of Government Ministries / Department / Strategic Organizations without authorization from the concerned competent authorities, then the Societies shall, pursuant to direction of the Registrar Cooperative Societies Department, ICT, within two months of the said direction, do the needful to change their respective names under which they have been registered without authorization.